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Northland Capital Partners View on the City - Edenville Energy, Rockwell Diamonds, Motif Bio

Northland Capital Partners View on the City - Edenville Energy, Rockwell Diamonds, Motif Bio

Edenville Energy (LON:EDL) – CORP: Rukwa Update
Market Cap: £2.5m; Current Price: 0.02p

Bulk sampling to commence in August and ESIA work to be completed in Q316
 Edenville Energy has commenced the Environmental and Social Impact Assessment work, due to be completed in Q316 with the ESIA application to be completed in H117.
 Site access upgrades are largely complete and preparations for the bulk sample are also completed. Bulk sampling is expected to commence in August with the first phase of test work to commence in September. These results will feed into the power plant and coal washing facilities design.
 The Company is currently conducting site visits with equipment suppliers and EPC Groups.

NORTHLAND CAPITAL PARTNERS VIEW: Edenville Energy continues to advance the preconstruction tasks at the Rukwa Coal to Power Project, located in Tanzania. The ESIA work, due to be completed in Q316, and ESIA application, targeted for H117, will both be important milestones for the Company, as will the results of the bulk sample that is due to commence next month.

Rockwell Diamonds (CVE:RDI) – CORP: Q117 results
Market Cap: CAD$5.5m; Current Price: 10c

Q117 sees major operational improvement
 During Q117 Rockwell Diamonds reported a gross profit of US$3.3m (before amortisation and depreciation). Profit attributable to owners of the parent company Totalled US$0.6m compared to a loss of US$5.1m in Q116 and US$17.4m in Q416.
 Total revenue during Q117 totalled US$12.5m up 36% compared to US$9.2m in Q116 and up 20% compared to US$10.4m Q416.
 Average cash costs in Q117 totalled US$9.26/m3 down 29% compared to US$13.09/m3 Q116 and in line with US$9.1/m3 in Q416.
 Net debt totalled US$53m in Q117 compared to US$55m in Q416.
Drilling and pitting at the Remhoogte-Holsloot Complex Mine has revealed significantly less Rooikoppie gravels but potentially more Palaeo gravels than previously thought. An updated Palaeo gravel estimate is underway and will be reported next quarter.
 Wouterspan remains on track to commence commissioning in August 2016.

NORTHLAND CAPITAL PARTNERS VIEW: Q117 has seen a major operational improvement from Rockwell Diamonds compared to the last financial year. The commissioning of the Wouterspan Mine should see the Company continue to make further improvement as it aims to reach its production target of 350,000m3 of gravel per month by the end of this financial year. The discovery of less Rooikoppie gravels could prove challenging as they tend to contain higher values stones, but although the Paleo gravels generally contain lower value diamonds they are generally much higher-grade, which may compensate for the lower value stones.

Motif Bio Plc (LON:MTFB) – BUY*: Proposed NASDAQ listing
Market Cap: £49m; Current Price: 45p; Target Price: 114p

Motif files for NASDAQ listing

 Motif Bio plc announced that it has filed a registration statement on Form F-1 with the U.S. Securities and Exchange Commission (SEC) relating to a proposed public offering of American Depositary Shares (ADSs).
 Motif Bio has also applied to have its ADSs listed on the NASDAQ Global Select Market under the ticker symbol "MTFB".
 Following completion of the offering of the ADSs, Motif Bio's ordinary shares will continue to trade on the AIM market of the London Stock Exchange. The number of ADSs to be offered and the price per ADS for the offering have not yet been determined.
 SunTrust Robinson Humphrey, Inc. is acting as the book-running manager for the offering.

NORTHLAND CAPITAL PARTNERS VIEW: Motif has filed for a US NASDAQ listing in preparation for flagship product iclaprim’s future US launch. We believe that a US listing could help bridge the significant valuation gap between Motif and its US peers. In the wake of a major antibiotic resistance crisis, the treatment’s sales could run into billions of US dollars per year.
 

1. Northland Capital Partners Limited (“Northland”) acts as Nominated Advisor and/or Broker to the company.

2. Northland) and/or its affiliates companies do beneficially own 1% or more of any class of the issuer’s equity securities, as of the end of the month immediately preceding the date of issuance of the research report or the end of the second most recent month if the issue date is less than 10 calendar days after the end of the most recent month. 

3. The authoring analyst or any associate of the authoring analyst does maintain a long or short position in any of the issuer’s securities directly or through derivatives, including options or futures positions.

4. Northland, its affiliated companies, partners, officers, directors or any authoring analyst of Northland has provided services to the issuer for remuneration during the preceding 12 months other than investment advisory or trading services.

5. Northland or any of its affiliated companies has performed investment banking services for the issuer during the 12 months preceding the date of issuance of the report.  

6. A partner, director, officer, employee or agent of Northland or any of its affiliated companies is an officer, director, employee or advisor of the issuer.  Disclosures are applicable for all companies

7. The authoring analyst, or any associate of the authoring analyst, has viewed the material operations of the issuer. 

8. The authoring analyst, or any associate of the authoring analyst, received reimbursement for travel expenses.

9. Northland makes a market in the securities of this company.

 

 

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This document is provided solely to enable clients to make their own investment decisions. It may therefore not be suitable for all recipients and does not constitute a personal recommendation to invest. It does not constitute an offer or solicitation to buy or sell securities or instruments of any kind. If you have any doubts about the suitability of this service, you should seek advice from your investment adviser. This document is produced in accordance with UK laws and regulations. It is not intended for any person whose nationality or residential circumstances may render its receipt unlawful.

The past is not necessarily a guide to future performance. The value of shares and the income arising from them can fall as well as rise and investors may get back less than they originally invested. The information contained in this document has been obtained from sources which Northland Capital Partners Limited believes to be re¬li¬able. The Com¬pany does not warrant that such information is accurate or complete. All estimates and prospective figures quoted in this report are forecasts and not guaranteed. Opinions included in this report reflect the Company’s judgement at the date of publication and are subject to change without notice. If the investment(s) mentioned in this report are denominated in a currency different from the currency of the country in which the recipient is a resident, the recipient should be aware that fluctuations in exchange rates may have an adverse effect on the value of the investment(s). The listing requirements for securities listed on AIM or PLUS markets are less demanding, also trading in them may be less liquid than main markets.

Northland Capital Partners Limited and/or its officers, as¬sociated entities or clients may have a position, or other material interest, in any securities men¬tioned in this report. Northland Capital Partners Limited does not provide recommendations on securities of firms with which it has a corporate relationship. More information about our management of Conflicts of Interest, Investment Research Methodology & Definition of Recommendations can be found at www.northlandcp.co.uk 

Northland Capital Partners Limited is authorised and regulated by the Financial Conduct Authority and a Member of the London Stock Exchange.

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